Borja seeks exemptions • Tinian mayor says bill eliminates island municipality’s chance to develop garment industry

Tinian Mayor Francisco M. Borja has sought exemptions under the Omnibus Labor and Business Reform bill to allow the island municipality to attract garment manufacturers, noting that the proposal is intended to deal only with the problems confronting Saipan.

Lawmakers should consider potential development of the apparel industry on Tinian and Rota, and thus should not prevent these municipalities from exploring that possibility, according to his testimony to the Senate Committee on Resources, Economic, Development and Program.

“The bill needs to take into consideration the development of this industry on Tinian and Rota. The wording of this bill essentially ‘kills’ any development of the garment industry” on the islands, Mr. Borja said.

He also expressed support for the proposal, but recommended some changes that will meet the present conditions on his island or on Rota, which do not experience the same growth as on the heavily-populated Saipan.

For instance, the proposed 30 percent ratio of U.S. citizens working in the management and supervisory staff of each garment manufacturing firm will not be feasible for the two islands due to the small population.

Mr. Borja pointed out that it should be set at 15 percent or lower. At the same time, he said the bill must not set the salary standard in determining what is supervisory position or management — a function that should be left for the businesses to determine.

“It is very important for your committee to understand that when deciding on issues such as this sweeping reform on labor and business laws in the Commonwealth that essentially the word ‘Commonwealth’ means ‘Saipan’,” he said.

“These changes are essentially made to fix problems that are predominantly occurring on… Saipan,” Mr. Borja added. “Tinian and Rota have no garment industry at the moment, but we should not inhibit the development of that business or others due to problems Saipan is facing.”

Moreover, the Tinian mayor cited the need to open up restricted job categories to nonresident workers as he noted that accountant, secretary and bookkeeper are “highly sought-after and difficult to fill.

“It is necessary to give latitude to the employer to seek the filling of these positions abroad if no qualified resident worker can be found,” he said.

The committee chaired by Senate Floor Leader Pete P. Reyes conducted a public hearing Monday on Tinian as part of its review of the Omnibus measure contained in HB 12-39 and offered by House Speaker Benigno R. Fitial.

The proposal seeks to lift the labor moratorium, the three-year stay limit, the $100,000 cash deposit imposed on foreign investments, the garment attrition scheme as well as repeal the fair resident workers compensation law.

One of key economic measures aimed at helping businesses cope with the current crisis, the bill is expected to be broken down into several pieces of legislation to fast-track its passage in the upper house.

A report will be drafted by the committee soon for consideration by the full Senate, according to Mr. Reyes.